Fuel prices around the world.

[jyoutz]

Exporting is a way to give others a chance to buy American oil rather than Putins oil. We all know we can increase production dramatically and so could other nations to the point that Russias oil sales decrease.
Also, if permits on NG ship loading facilities would be granted, we could export more NG and give Europe a chance to by American NG rather than Russian NG.
Thatll help weaken Putin.

Export would be fine if we produced more than we use. We don’t. Petroleum companies don’t want to do this because prices would drop.

 

[Hay Dude]

Export would be fine if we produced more than we use. We don’t. Petroleum companies don’t want to do this because prices would drop.

It is my understanding that very recently we became a net exporter of energy. If I am not mistaken, that means we produce more than we use.
Even if we didn’t, we can produce more by making it easier. We can stop buying Russian oil. We can insist our allies do the same. They never should have been buying Putin’s gas or oil in the first place.

 

[Kyle_in_Tex]

Understandable. Discussing anything with Hay Dude is like wrestling with a pig in mud. They like it and you don't. Why I keep him on ignore. Only poster on here I do.

ad hominem.

 

[jyoutz]

It is my understanding that very recently we became a net exporter of energy. If I am not mistaken, that means we produce more than we use.
Even if we didn’t, we can produce more by making it easier. We can stop buying Russian oil. We can insist our allies do the same. They never should have been buying Putin’s gas or oil in the first place.

The oil companies have lots of land to drill and nobody stopping them. They produce according to their marketing plan. Do we offer incentives to produce more?

 

[Hay Dude]

The oil companies have lots of land to drill and nobody stopping them. They produce according to their marketing plan. Do we offer incentives to produce more?

No, but if there ever was a time to do that, right now, we should. People are suffering in the US and theres a genocide in Ukraine.

A rare chance to get a “2-fer”. We could lower gas prices and Koch Putin in the ribs at the same time. Without firing a shot…

There is probably no better time to give oil companies incentives. Let them drill in more places like federal lands and waters.
And our esteemed leaders could grant a federal tax holiday on fuel for a limited time until things stabilize.

 

[sd455dan]

It is my understanding that very recently we became a net exporter of energy. If I am not mistaken, that means we produce more than we use.
Even if we didn’t, we can produce more by making it easier. We can stop buying Russian oil. We can insist our allies do the same. They never should have been buying Putin’s gas or oil in the first place.

I know in some of the areas that were under active well development /drilling when COVID hit and prices for crude and gas dropped to where several companies literally filed reorganizational bankruptcy or went out of business- many bought up by Bigger Fish.
Several fields in the US that were under active development allowed the well drilling permits to expire. Hard to develop wells when you are bleeding massive amounts of cash. Many wells shut in.
Now that prices have spiked the resource companies have opened up any shut in wells and probably refiled the expired permits and are actively moving rigs in and drilling again. It all takes time though. If I was a betting man, A year or so from now US production will be up significantly and hopefully the crude prices will drop and then the pump prices as well.

 

[jyoutz]

No, but if there ever was a time to do that, right now, we should. People are suffering in the US and people are dying in Ukraine.

There is probably no better time to give oil companies incentives. Let them drill in more places like federal lands and waters.
And our ”esteemed leaders” could grant a federal tax holiday on fuel for a limited time until things stabilize.

They have 26 million acres of federal lands currently with active leases. Most have yet to be drilled. And this 26 million acres basically amounts to almost all of the geologically promising oil reserves on federal lands. There are some remaining such as in Alaska but when those lease were offered 3 years ago, no companies bid because production costs are too high in the Arctic. Most of the best oil reserves in the largest oil reserves in the world (Permian basin) are in Texas where there are almost no federal lands. Some of the Permian basin is in New Mexico (about 1/3 each federal, private, state lands). Most of the NM lands already have federal and state leases but many areas have yet to be drilled.

 

[Hay Dude]

I know in some of the areas that were under active well development /drilling when COVID hit and prices for crude and gas dropped to where several companies literally filed reorganizational bankruptcy or went out of business- many bought up by Bigger Fish.
Several fields in the US that were under active development allowed the well drilling permits to expire. Hard to develop wells when you are bleeding massive amounts of cash. Many wells shut in.
Now that prices have spiked the resource companies have opened up any shut in wells and probably refiled the expired permits and are actively moving rigs in and drilling again. It all takes time though. If I was a betting man, A year or so from now US production will be up significantly and hopefully the crude prices will drop and then the pump prices as well.

Oil & gas wells are very expensive to shut down and start back up. I heard there are 10’s of thousands of capped oil & gas wells. I read that they can leak methane gas which is bad for our atmosphere. Why not keep more of them producing and enact easing of restrictions, and building of export terminals and pipelines? This would increase profitability from a production standpoint.

 

[jyoutz]

Oil & gas wells are very expensive to shut down and start back up. I heard there are 10’s of thousands of capped oil & gas wells. I read that they can leak methane gas which is bad for our atmosphere. Why not keep more of them producing and enact easing of restrictions, and building of export terminals and pipelines? This would increase profitability from a production standpoint.

IDK. Oil companies open and close wells based on their marketing strategies. How they make these decisions is considered to be proprietary and confidential to their own company.

 

[Hay Dude]

Federal gas tax is 18.4/gallon. Not a lot, but aa temporary moratorium on it could be a step in the right direction and shows leadership. It could be reinstated once prices come back down. There’s probably 1000’s of pages of federal regulations on oil and gas exploration. Drop some of them until prices relax back into the $3 range.
It’ll help keep our economy moving and reduce retail prices for all the goods that are shipped using fuel.

 

[MossRoad]

Oil & gas wells are very expensive to shut down and start back up. I heard there are 10’s of thousands of capped oil & gas wells. I read that they can leak methane gas which is bad for our atmosphere. Why not keep more of them producing and enact easing of restrictions, and building of export terminals and pipelines? This would increase profitability from a production standpoint.

Oil wells are NOT expensive to shut down and start back up again. That's a fact.

There are hundreds of them sitting in the woods in SW lower Michigan.

Weren't you on TBN years ago when so many members were talking about restarting the oil wells they had shut down on their own properties because oil prices had risen to a point where it was profitable? I was. Some people were bragging about it. Some were saying it was a god send for their family farms.

I knew a guy who's family had 3 wells sitting on their farm. Shut down for decades. They fired them all up when oil prices went high. Made some really good money.

Then natural gas fracking became popular, the price of oil tanked, and they shut down the oil wells.

Drive through Ohio. There's oil wells sitting all over the place. Most of them aren't pumping. All they have to do is flip a switch and they start pumping again. Same thing in Illinois, MO, and OK.

So wherever you're getting the information that it's expensive to shut down or restart oil wells is just wrong.

 

[Hay Dude]

“Flip a switch”, eh? Just like turning on the lights in a garage? That’s a fact?

Well I just listened to a Petroleum Institute expert say they were expensive to shut down and move all the equipment away, then come back and start up all over again, but I guess you know more than him?
I know from my own business, shutting down a job site, moving all the equipment away, then having to return to start it back up is a big loss of money.

 

[Reddogs]

Wow, the gas just jumped this week from $3.49 to $3.99 a gallon, and diesel went up to $4.59. I filled up all the tractors and cars, but if it keeps going up that fast, a lot of plans will have to be gone over again or set aside.

Well, this is really getting bad, it just went up to $4.29 from yesterdays price....

 

[jyoutz]

Federal gas tax is 18.4/gallon. Not a lot, but aa temporary moratorium on it could be a step in the right direction and shows leadership. It could be reinstated once prices come back down. There’s probably 1000’s of pages of federal regulations on oil and gas exploration. Drop some of them until prices relax back into the $3 range.
It’ll help keep our economy moving and reduce retail prices for all the goods that are shipped using fuel.

It’s a lot less complex than you make this out. The leases that have been issued have already spelled out the terms and this is SOP that companies are familiar with and operate every day. And once again, the largest known oil reserves in the world are in west Texas/SE NM. Most of this land is private. The only federal lands in these largest oil reserves are in NM, and those lands are a small share of the Permian basin. Oil companies determine how much oil is produced, not the government. Landowners have a big role in oil production, and many hold out for higher prices before signing leases.

 

[MossRoad]

“Flip a switch”, eh? Just like turning on the lights in a garage? That’s a fact?

Well I just listened to a Petroleum Institute expert say they were expensive to shut down and move all the equipment away, then come back and start up all over again, but I guess you know more than him?
I know from my own business, shutting down a job site, moving all the equipment away, then having to return to start it back up is a big loss of money.

You've never seen the oil wells sitting all over PA, OH, MI, IL, Eastern IN, MO? Did you not read about the boom in reopening the old oil wells here on TBN years ago?

 

[jyoutz]

Sorry to pick at you it is nothing personal, but, I am shocked at the obvious stuff people miss.

Of course there are under/un used leases. If you owned a oil company and were responsible for the welfare of thousands of employees:

New wells have a payoff period of years.
R&D money has a payback period of decades.

How much time and treasure would you invest in a product that your government has committed to eliminating the need for in ~20 years.

The death of the pipe line, the stopping of the federal lease auctions, etc. are not what is causing domestic production challenges. Those are the indicators that you are a target for being put on an ice flow. Old technology, legacy, even dangerous to your people.

This country has had extraordinary success. In modern times a ton of that success is due to cheap energy and freedom of movement.

I have plenty of friends that live in a large metro, many no longer own a car. They save a ton of money, reduce the risk of being in an accident, rest on the way to and from work. I don't know why, but, not one of them are concerned about what will happen when the people that control the trains and buses no longer want them to go where they want to go.

If we don't understand the motives of those in power, we will believe gas is high because of a virus, or because of a war. By the time a voting majority figure it out, it is unrecoverable.

We can learn from our friends in the Ukraine, certainly the simplest way to avoid war or fighting is to surrender, and let someone else tell you what is good for you. If you value your freedom, sometimes you have to stand for it.

I give my kids 2 pieces of advice (and a bunch of other crap they can't use). Always try to see issues from one step up. Follow the money. If you do those things, you will eventually understand why things are the way they are.

Best,

ed

Oil rigs are at a high plateau in my state. I guess those companies think the R&D is worth spending money on.

“Texas added four rigs for 279 rigs drilling statewide this year, 120 more than the 159 at work in December 2020. New Mexico also added four rigs for 93, 28 more than the 65 at work in New Mexico last year.Dec 23, 2021”
Home › oil › article

Rig count increases as drilling continues steady rise​

https://www.google.com/search?clien...2ahUKEwi1jsvigrP2AhVQJTQIHWdqCI4Q3rMBegQIBRAC

 

[Hay Dude]

You've never seen the oil wells sitting all over PA, OH, MI, IL, Eastern IN, MO? Did you not read about the boom in reopening the old oil wells here on TBN years ago?

I don’t get my news from TBN

 

[MossRoad]

I don’t get my news from TBN

You've never seen the oil wells sitting all over PA, OH, MI, IL, Eastern IN, MO?

 

[dirttoys]

Oil rigs are at a high plateau in my state. I guess those companies think the R&D is worth spending money on.

“Texas added four rigs for 279 rigs drilling statewide this year, 120 more than the 159 at work in December 2020. New Mexico also added four rigs for 93, 28 more than the 65 at work in New Mexico last year.Dec 23, 2021”
Home › oil › article

Rig count increases as drilling continues steady rise​

https://www.google.com/search?clien...2ahUKEwi1jsvigrP2AhVQJTQIHWdqCI4Q3rMBegQIBRAC

I would call plateau the correct word. I am sorry if I am struggling to make my point. A person (or company's) desire to ramp production temporarily, could adversely be effected by being treated like an enemy of the state. Most of the activity you noted above had been in the planing stages for many years.

Policy changes are like mating elephants, it is done at a very high level, and takes a long time to see the results.

Again, not picking at you, or really anyone, if I was a little smarter, or more eloquent, I could get people to see how/why things are done. The deficit is with me.

Best,

ed